Essien Oden

Eighty percent of listed manufacturing firms in Nigeria (4 out of 5 firms) had negative and fluctuating returns on equity eighty-three percent of the time (5 out of 6 years), while inexplicable fluctuations in philanthropic expenditures, labor costs, and creditor days correspondingly occurred during the 6-year period under review (2018–2023). This study looks at how social initiatives affect the value of listed manufacturing firms in Nigeria. Its specific goal was to determine whether a firm’s value (measured as return on equity) is influenced by the cost of corporate giving, the cost of employee well-being, and the time taken to settle creditors. Data were obtained from the financial reports of 5 companies. the sample of which was judgmentally drawn from 16 listed companies using a quantitative method of research. EViews statistical package was used to analyze data. It was found that investments in social initiatives as supported by corporate giving {B1 = 0.010162, P = .2691 or P > .05}, employee well-being {B2 = .012285, P = .3836 or P > .05}, and obligations to creditors {B3 = .012018, P = .8327 or P > .05} are not value-enhancing in Nigeria’s manufacturing sector. In light of the above, it was concluded that listed companies in the manufacturing sector in Nigeria are not legitimately and strategically investing their resources in social initiatives, and corporate value is consequently not enhanced and maximized.

Type of the article: Research Article

Abstract
The study considers the impact of green governance on investor wealth through the sustainability performance of manufacturing firms in Nigeria from 2015 to 2024. The green governance variables considered in the study include environmental expense ratio, sustainability index score, social expense ratio, and environmental, social, and governance (ESG) facilitators score against earnings per share (EPS) as a proxy for investor wealth. The study adopts the ex post facto research design. This paper employed fixed-effects panel regression to analyze panel data from Dangote Cement, Lafarge Africa, and BUA Cement. The model has an overall predictive ability of 67.4%; therefore, the model was found to be appropriate (p = .001, F = 12.83). The sustainability index score (β = 0.186, p = 0.013), social expense ratio (β = 5.487, p = 0.027), and ESG facilitators scores (β = 0.212, p = 0.018) were found to be significantly and positively related to profitability, while the environmental expense ratio (β = – 1.908, p = 0.312) was found to be non-significant. It can be argued based on the findings that sustainability initiatives combined with social investment and transparent governance practices can increase the wealth of investors. But the environmental expense ratio might take more time before it turns into profitability. The research findings highlighted the theoretical and practical importance of long-term investment in sustainability practices.